Ford 2011 Annual Report Download - page 94

Notes to the Financial Statements
92 Ford Motor Company | 2011 Annual Report
NOTE 1. PRESENTATION
For purposes of this report, "Ford," the "Company," "we," "our," "us" or similar references mean Ford Motor Company
and our consolidated subsidiaries and our consolidated variable interest entities ("VIEs") of which we are the primary
beneficiary, unless the context requires otherwise.
We prepare our financial statements in accordance with generally accepted accounting principles in the United States
("GAAP"). We present the financial statements on a consolidated basis and on a sector basis for our Automotive and
Financial Services sectors. The additional information provided in the sector statements enables the reader to better
understand the operating performance, financial position, cash flows, and liquidity of our two very different businesses.
We eliminate all intercompany items and transactions in the consolidated and sector balance sheets. In certain
circumstances, presentation of these intercompany eliminations or consolidated adjustments differ between the
consolidated and sector financial statements. These line items are reconciled below under "Reconciliations between
Consolidated and Sector Financial Statements" or in related footnotes.
We reclassified certain prior year amounts in our consolidated financial statements to conform to current year
presentation.
In the first quarter of 2009, our wholly-owned subsidiary Ford Motor Credit Company LLC ("Ford Credit") recorded a
$630 million cumulative adjustment to correct for the overstatement of Financial Services sector cash and cash
equivalents and certain accounts payable that originated in prior periods. The impact on previously-issued annual and
interim financial statements was not material.
Adoption of New Accounting Standards
Troubled Debt Restructurings. On July 1, 2011 we adopted the new accounting standard related to a creditor's
determination of whether a restructuring is a troubled debt restructuring ("TDR"). The new standard provides additional
guidance as to whether a restructuring meets the criteria to be considered a TDR. Refer to Notes 7 and 9 for further
information regarding TDRs.
Business Combinations. On January 1, 2011 we adopted the new accounting standard on business combinations.
The new standard requires public entities that present comparative financial statements to disclose the revenue and
earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred
as of the beginning of the prior annual reporting period. The new accounting standard did not have an impact on our
financial statement disclosures.
Accumulated Other Comprehensive Income/(Loss)
The components of accumulated other comprehensive income/(loss) attributable to Ford Motor Company as of
December 31 were as follows (in millions):
Accumulated other comprehensive income/(loss):
Foreign currency translation
Net gain/(loss) on derivative instruments
Employee benefit related
Net holding gain/(loss)
Total accumulated other comprehensive income/(loss)
2011
$ (1,383)
(181)
(17,170)
—
$ (18,734)
2010
$(665)
(29)
(13,617)
(2)
$ (14,313)
2009
$ 1,568
(5)
(12,427)
—
$ (10,864)